This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 94 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Ang pagkompyut ng GDP at GNI ay may tatlong (3) paraan:Value-Added o Industrial Origin Approach, Factor Income Approach at ..... A) Economic Indicators Approach. B) National Income Accounting Approach. C) Gross National Product Approach. D) Final Expenditure Approach. Show Answer Correct Answer: D) Final Expenditure Approach. 2. To offset an inflationary boom, appropriate Fed policy could be to ..... reserve requirements to ..... AD. A) Decrease; increase. B) Decrease; decrease. C) Increase; increase. D) Increase; decrease. Show Answer Correct Answer: D) Increase; decrease. 3. ..... consists of human-made goods such as buildings and machines used to produce other goods and services. A) Physical Capital. B) Labor Capital. C) Human Capital. D) Technology Capital. Show Answer Correct Answer: A) Physical Capital. 4. True or False:Monetarism asserts that GDP will grow steadily if the money supply grows steadily. A) True. B) False. Show Answer Correct Answer: A) True. 5. The difference between GDP and GNP is A) Net property income from abroad. B) Subsidy. C) Indirect tax. D) Depreciation. Show Answer Correct Answer: A) Net property income from abroad. 6. Typically, the demand is high but the supply is low for A) Temporary workers. B) Semi-skilled workers. C) Unskilled workers. D) Professional workers. Show Answer Correct Answer: D) Professional workers. 7. Long-term or "trend" growth in U.S. Real GDP is an annual rate of growth of approximately: A) 9%. B) 5%. C) 3%. D) 7%. Show Answer Correct Answer: C) 3%. 8. Which of the following is not a SHIFTER of short-run aggregate supply? A) A change in price of resources. B) A change in the population. C) A change in future expectations about price. D) A change in government policy. Show Answer Correct Answer: B) A change in the population. 9. What is the MAIN difference between inflation and deflation? A) Deflation is more helpful to the economy than inflation. B) Deflation is much rarer than inflation in an economy. C) Deflation decreases purchasing power ($ 10 buys less today than in the past), while inflation increases purchasing power. D) Inflation decreases purchasing power ($ 10 buys less today than in the past), while deflation increases purchasing power. Show Answer Correct Answer: D) Inflation decreases purchasing power ($ 10 buys less today than in the past), while deflation increases purchasing power. 10. Which statement is true about inflation? A) Is a concern for the nation's economy but not for individuals. B) Affects individual consumer in different ways. C) Is a concern for individuals but not for the overall economy. D) Causes the value of a dollar to increase over time. Show Answer Correct Answer: B) Affects individual consumer in different ways. 11. Golden rule with technological progres A) C*=f(k*)-( $\delta$ $-\delta$. B) False. Show Answer Correct Answer: A) C*=f(k*)-( $\delta$ $-\delta$. 12. Which of the following types of unemployment is generally of the shortest duration? A) Demand deficient unemployment. B) Frictional unemployment. C) Structural unemployment. D) Seasonal unemployment. Show Answer Correct Answer: B) Frictional unemployment. 13. When the economy is working properly, what is the unemployment rate? A) 0 to 3 percent. B) 8 to 10 percent. C) 4 to 6 percent. D) 10 to 12 percent. Show Answer Correct Answer: C) 4 to 6 percent. 14. When a government uses seignorage as a way to pay off its debt, it is actually imposing an inflation tax on those with money. A) False. B) True. Show Answer Correct Answer: B) True. 15. The net capital outflow is..... A) Purchases of domestic assets by domestic residents are reduced by purchases of foreign assets by foreign residents. B) Purchases of foreign assets by domestic residents are reduced by purchases of domestic assets by foreign residents. C) Sales of foreign assets by foreign residents are reduced by sales of domestic assets by domestic residents. D) Sales of foreign assets by domestic residents are reduced by sales of domestic assets by foreign residents. Show Answer Correct Answer: B) Purchases of foreign assets by domestic residents are reduced by purchases of domestic assets by foreign residents. 16. The federal income tax has different tax bracket percentages and income levels for single individual. As a result of this practice, A) The federal income tax is based on the benefits-received theory of taxation. B) You pay different percentages of taxes as your income increases. C) All of your income is taxed at the highest percentage rate. D) The federal income tax is a regressive tax. Show Answer Correct Answer: B) You pay different percentages of taxes as your income increases. 17. What causes cost push inflation? A) An increase in demand for goods and services. B) An increase in supply. C) A rise in production costs passed on to consumers. D) A fall in the price of imports. Show Answer Correct Answer: C) A rise in production costs passed on to consumers. 18. "Liquidity Trap" happen when: A) Increase in consumption and IS curve shift to the right. B) When price falls and increase in real money balance (M/P). C) The changes in wealth does not change in interest rate. D) Then interest rate falls due to increase in money supply. Show Answer Correct Answer: C) The changes in wealth does not change in interest rate. 19. As described in the text, what is the primary belief behind supply-side economics? A) A decrease in the interest rate will encourage more entrepreneurial activity in an economy. B) An increase in government spending will boost economic production. C) A decrease in social support services will force more people to find employment. D) Tax cuts will encourage more work and investment, leading to higher output and tax revenues. E) An increase in the money supply will boost the economy. Show Answer Correct Answer: D) Tax cuts will encourage more work and investment, leading to higher output and tax revenues. 20. It is a political-economic movement originating in the period 1500-1750 whose paramount goal of national policy is to make the nation rich and powerful the means of which consisted mainly in the protection of domestic industy and the regulation of trade. A) Diversification. B) Mercantilism. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Mercantilism. 21. Which of the following does Economics primarily study? A) How scarcity can be eliminated. B) How firms manipulate prices. C) How government influences resource allocation decisions. D) The problem of scarce resources relative to human wants. Show Answer Correct Answer: D) The problem of scarce resources relative to human wants. 22. How could the Federal Reserve encourage banks to lend out more of their reserves? A) Reduce the money supply. B) Raise the required amount of reserve. C) Reduce the discount rate. D) Increase the prime rate. Show Answer Correct Answer: C) Reduce the discount rate. 23. Eric purchased a movie ticket with his card. This money will come straight out of his checking account. What card did he use? A) Rewards Card. B) Debit Card. C) Credit Card. D) Gift Card. Show Answer Correct Answer: B) Debit Card. 24. When a chance in some economic factor ( other than price) causes a different quantity to be supplied at every price A) Supply. B) Supply curve. C) Shift in demand. D) Shift in supply. Show Answer Correct Answer: D) Shift in supply. 25. Which one of the following is a government policy response designed to reduce the environmental effects of economic growth? A) A ban on the use of single-use plastic bags. B) Research and development tax incentives for medical research. C) Subsidies paid to coal-mining businesses to reduce their transport costs. D) Grants to information technology firms to encourage the export of services to overseas markets. Show Answer Correct Answer: A) A ban on the use of single-use plastic bags. 26. How does contractionary monetary policy affect the interest rate? A) It depends. B) Increases it. C) Does not affect it. D) Decreases it. Show Answer Correct Answer: B) Increases it. 27. Represents business activity conducted without the knowledge of the government. A) Red economy. B) Hidden economy. C) Under economy. D) Underground economy. Show Answer Correct Answer: D) Underground economy. 28. If the Fed wants to reduce the amount of loans a bank can make, then it should adjust ..... A) Open Market Operations. B) The Reserve Ratio. C) The Discount Rate. D) None of above. Show Answer Correct Answer: B) The Reserve Ratio. 29. The proportion of any change in income that is spent rather than saved is A) Marginal propensity to consume. B) Macroeconomic equilibrium. C) Income determinants. D) The multiplier. Show Answer Correct Answer: A) Marginal propensity to consume. 30. The country's investment..... should be funded. A) Only through government deposits. B) Only with loans from the rest of the world. C) With the deficit of the state budget. D) With state savings and loans from other countries around the world. Show Answer Correct Answer: D) With state savings and loans from other countries around the world. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books